Idaho Real Estate Practice Exam

Who are the only unlicensed parties an agent may share any part of their commissions with?

1. Buyers and sellers

2. Referrals and family members

3. The broker and the office manager

4. The buyer and seller to the transactions

The correct answer is: The buyer and seller to the transactions

The correct answer highlights the unique circumstances under which an agent may share parts of their commissions. In real estate transactions, agents are typically prohibited from sharing commissions with individuals who do not hold a real estate license. However, when the statement specifies the buyer and seller to the transactions, it recognizes that these parties are integral to the deal. They are directly involved and can receive portions of the commission as part of the overall transaction structure, such as in the situation where an agent might offer a rebate to the buyer or a concession to the seller. This understanding is crucial since it reflects the regulatory framework governing real estate transactions. Agents must ensure that any commission split or sharing adheres to state laws and real estate regulations. This is not the case for unlicensed referrals or family members, who are not part of the transaction and cannot receive commission splits. The broker and office manager are typically entitled to a share of commissions as they are licensed professionals, further distinguishing the role of buyers and sellers in this context.